Emmerson Raises GBP5.5 Million Via Placing; Proposes Move To AIM

(Alliance News) - Emmerson PLC said Friday said it has raised GBP5.5 million via a share placing ...

Alliance News 26 February, 2021 | 7:10PM
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(Alliance News) - Emmerson PLC said Friday said it has raised GBP5.5 million via a share placing to help fund the development of its Khemisset project.

Emmerson placed 95.7 million shares at a placing price of 5.75 pence each. The stock closed up 4.7% at 6.70p each Friday.

Shore Capital Stockbrokers Ltd and Shard Capital Partners LLP acted as joint bookrunners in connection with the placing.

Emmerson has been granted a mining licence for Khemisset potash project providing the company with the exclusive right to develop and mine the project. The company said net proceeds will be used for the continuation of the project development workstreams comprising the detailed design for the mine, including the decline and infrastructure.

"We are delighted with the strong support shown by both some significant new investors and also a number of our existing investors, which further endorses their strong belief in the potential of Emmerson and the Khemisset Project. These funds enable us to continue to make strong progress as we move ever closer to the commencement of construction," Chief Executive Officer Graham Clarke said.

In addition, Emmerson also proposes to cancel the admission of shares to listing on the FCA's official list and to trading on the London Stock Exchange's main market for listed securities and its intention to apply for admission of its ordinary shares to trading on the AIM market of the London Stock Exchange.

"The board believes that AIM is a market and environment which is more suited to the Company's current size and strategy and AIM will offer greater flexibility with regard to corporate transactions and should therefore enable the company to agree and execute certain transactions more quickly and cost effectively than a company on the official list," the company said.

Further details on the proposed move to AIM will be published following completion of the placing, it added.

By Arvind Bhunjun; arvindbhunjun@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Emmerson PLC 5.80 GBX 0.87 -

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